420 million to access Internet on mobile in India by June: IAMAI

NEW DELHI: India is expected to have 420 million mobile Internet users by June this year, with urban consumers spending as much as Rs 275 a month on data, a report by industry body IAMAI today said.

The number of mobile Internet users in the country at the end of December last year was estimated to be 389 million, as per the report by the Internet and Mobile Association of India (IAMAI) and IMRB.

Of the 420 million, about 250 million users are expected to come from urban India, while the remaining 170 million would be in rural parts of the country.

The growth in user base is faster in rural parts of the country as the addition is propelled by falling data charges and smartphones becoming more affordable.

The report found urban users being top consumers of communication, social networking and entertainment on mobile Internet, while in rural India, entertainment rules the roost.

As per the report, urban users are paying as much as Rs 552 a month with about 50 per cent going towards data charges.

In urban India, the young spend a greater proportion of their monthly bill on data usage, while voice component increases steadily with age, the report found.

As per the report, the average monthly bill is highest for the age group of 45 years and both mobile data and voice expenditures for this age group were found to be the highest.

"Thus, while in terms of uptake, the younger generation is driving the growth of telecom services in urban India, more senior generations provide higher average revenue per user (ARPU) for telcos," it said.

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After PSU banks, the government is likely to infuse capital in two chronically ill telecom PSUs BSNL and MTNL, and the Union Cabinet is likely to take a decision on 4G spectrum allocation to them by the third week of the current month after DoT places the note before it for consideration.

At a high-level meeting at the PMO late Tuesday, it was also decided that the two telcos will frame a Voluntary Retirement Scheme (VRS) to reduce their employee strength, which will be followed by a reduction in the retirement age to 58.